The Australian share market is likely to shoot higher in early trade after US stocks pushed to fresh records on strong economic data from China, Europe and at home.
China economic news
Stocks began to rally in Asia after a surprisingly strong reading on Chinese factory data showing the official manufacturing purchasing managers' index for July came in expansion, rather than contraction territory.
Europe economic news
That was followed by data in Europe showing the eurozone purchasing managers' index for July also sitting in expansion territory.
US economic news
And US investors were buoyed by weekly jobless claims hitting a five-year low last week as well as a reading on manufacturing activity showing activity in July expanded at its fastest pace in 13 months.
Currencies
The Australian dollar extended its downward spiral in early trade as the greenback made gains on that US economic news. At 7:30AM the Aussie was buying $US89.32 cents, 59.11 Pence Sterling, 88.92 Yen and 67.64 Euro cents.
Figures
Wall Street had a stellar session: The Dow Jones Industrial Average surged by 128 points to close at 15,628, the S&P 500 added 21 points to close at 1,707 and the NASDAQ lifted 49 points to close at 3,676.
European markets were also sharply higher: London’s FTSE gained 61 points, Paris added 50 points and Frankfurt jumped 135 points higher.
Asian markets rallied: Tokyo’s Nikkei soared by 337 points, Hong Kong’s Hang Seng lifted 205 points, and China’s Shanghai Composite added 35 points.
The Australian share market closed moderately higher yesterday.
The S&P/ASX 200 index ended 10 points higher at 5,061. On the futures market the SPI is 41points up.
Economic news
The Australian Bureau of Statistics will release its producer price index for the June quarter and overseas arrivals and departures for the same period.
Company news
National Australia Bank Limited
(ASX:NAB) CEO Cameron Clyne says another global financial crisis is inevitable. He told the Australia Israel Chamber of Commerce business lunch in Sydney, the Australian funding market needs to become more resilient in preparation. Shares in NAB dropped 1.6 per cent yesterday to close at $30.73.
OceanaGold Corporation
(ASX:OGC) says new powers for health and safety representatives in New Zealand mines are a scary proposition and should be limited to coal mines only.The gold miner has urged the New Zealand government to pare back the proposed new inspectors' roles in the Health and Safety Bill, which was developed after the Pike River disaster. Shares in OeanaGold dipped 1.97 per cent yesterday to close at $1.75.
Ex-dividend
Corum Group Limited
(ASX:COO) will pay 0.7 cents per share unfranked
Katana Capital Limited
(ASX:KAT) will pay 1 cent per share fully franked
Ozgrowth Limited
(ASX:OZG) will pay 1 cent per share fully franked
Westoz Investment Company Limited
(ASX:WIC) will pay 6 cents per share fully franked
Commodities
Gold is down $1.80 to $US1,311 an ounce for the December contract on Comex. Silver is down $0.01 to $19.62 for September. Copper is up $0.05 at $3.17 a pound. Oil pushed higher on tightening supplies. The price jumped $2.86 at US$107.89 a barrel for September light crude in New York.
